The traditional expectation of entering retirement mortgage-free is becoming less common. Rising housing costs mean more of us are retiring while renting or still repaying a home loan, while others are choosing renting as a lifestyle option. Either way, housing costs are playing a bigger role in retirement planning.

And that can have a significant impact on what retirement looks like. Research suggests renters may need considerably more savings in retirement than homeowners to maintain a similar standard of living because ongoing rent continues to be a major expense.¹

That doesn’t mean a comfortable retirement is out of reach. It does mean your retirement strategy may need to look different.

Rethink your retirement plan

When people think about retirement planning, the focus is often on a single number – ‘How much super do I need?’ But retirement is about more than your balance. Where you live, your expected lifestyle, future expenses and how long your savings may need to last can all influence the path ahead.

If housing costs are likely to remain part of your future, understanding the bigger picture early can make a real difference. For example, if you’re renting, you’ll need to fork out for ongoing rental payments, but you won’t need to allow for potentially large one-off maintenance costs.

Whether you retire with a mortgage, continue renting, or face other ongoing housing costs, there are practical steps that may help strengthen your financial position over time:

• Review your super regularly by logging in to your Member Online account to keep track of your balance, contributions and investment options, and to see how you're progressing towards your retirement goals.
• Consider ways to grow your super. Depending on your circumstances, making extra contributions, such as salary sacrifice or personal contributions, may help boost your retirement savings over time. Even small amounts can add up through the power of compound growth.
• Think about the role housing may play in your retirement. Whether you expect to own your home outright, still have a mortgage, rent, or downsize in the future, housing costs can have a significant impact on how much income you'll need in retirement. Renters receiving Centrelink payments may be eligible for support, including Rent Assistance and a Pensioner Concession Card.
• Take stock of your expected retirement lifestyle. Consider the activities, travel plans, hobbies and day-to-day expenses you hope to enjoy. Having a clearer picture of your future lifestyle can help you estimate your retirement income needs more accurately.
• Set goals that reflect your own circumstances. Everyone's retirement journey is different. Focusing on what matters most to you and creating goals aligned to your needs and priorities can help you build a retirement plan that's right for you.

For some people, retirement planning can feel overwhelming – particularly when housing affordability and cost-of-living pressures are already stretching budgets today.

But retirement planning isn't about having every answer right now. It's about making informed decisions as early as possible and adjusting as life changes.

Need help understanding your next step?

Whether you're wondering if you're on track, thinking about making additional contributions, or wanting to understand how housing could affect your retirement plans, getting financial advice can help bring your goals into focus.

CareSuper members can access financial advice options² to help build a retirement strategy that's designed around you.

Find out how financial advice could help you plan for the future you want: